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Corruption Risks in Renewable Resource Governance: Case Studies in Iceland and Romania

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Corruption Risks in Renewable Resource Governance: Case Studies in Iceland and Romania Politics and Governance (ISSN: 2183–2463) 2020, Volume 8, Issue 2, Pages 167–179 DOI: 10.17645/pag.v8i2.2713 Article Corruption Risks in Renewable Resource Governance: Case Studies in Iceland and Romania Johanna Gisladottir 1,3,*, Sigurbjörg Sigurgeirsdottir 1, Ingrid Stjernquist 2 and Kristin Vala Ragnarsdottir 3 1 Faculty of Political Science, University of Iceland, 102 Reykjavik, Iceland; E-Mails: [email protected] (J.G.), [email protected] (S.S.) 2 Department of Physical Geography, Stockholm University, 106 91 Stockholm, Sweden; E-Mail: [email protected] 3 Institute of Earth Science, University of Iceland, 102 Reykjavik, Iceland; E-Mail: [email protected] * Corresponding author Submitted: 14 December 2019 | Accepted: 17 March 2020 | Published: 28 May 2020 Abstract In this research, we attempt to shed light on the question of where corruption risks in the governance of renewable resources are located and how they have been addressed in European countries that have different levels of corruption. A comparative case study design was chosen, looking into the fisheries sector in Iceland and the forestry sector in Romania. We conducted 25 semi-structured interviews with various stakeholders sampled through a snowball method. Qualitative coding and systems analysis were used to analyse the interviews. The results indicate that comprehensive and ambitious legislation does not necessarily translate into successful resource governance systems. In general, the institutions that were put in place to enforce and monitor the legal codes and regulations did not have the capacity to carry out their role. Additionally, interviewees were generally found to have a widespread perception of there being a corrupt relation- ship between politics and big companies operating in their sectors. Our findings suggest that when people hold such perceptions, it undermines anti-corruption policy efforts in the resource sectors, which can then impede sustainable re- source management. Keywords anti-corruption; corruption; enforcement mechanisms; governance; monitoring; natural resources; renewable resources Issue This article is part of the issue “Fighting Corruption in the Developed World: Dimensions, Patterns, Remedies” edited by Fabrizio Di Mascio (University of Turin, Italy) and Simona Piattoni (University of Trento, Italy). © 2020 by the authors; licensee Cogitatio (Lisbon, Portugal). This article is licensed under a Creative Commons Attribu- tion 4.0 International License (CC BY). 1. Introduction chain, but understanding the roles and influences of ac- tors in such systems provides important insights into how Environmental issues are higher on the public agenda in to address the risks (Kolstad, Søreide, & Williams, 2008). light of growing awareness of climate change and there- We adhere to the interpretation of corruption used by fore further efforts are needed to understand how re- Sumaila, Jacquet, and Witter (2017, p. 93) in this context, sources can be used sustainably. The tragedy of the com- where they describe it as “acts of ‘cheating,’ whereby in- mons has been widely cited as a metaphor to portray the dividuals or larger entities act in an illegal manner” which overuse of a renewable resource such as fisheries and serves to undermine both the resource itself as well as its forests (Ostrom, 1999). Rules and systems have there- management. Heywood (2016) suggests that one of the fore been established to regulate use or extraction, but reasons measures to reduce corruption have not been corruption can impede the achievement of management effective, is that disaggregation of the different types of goals. Resource management systems are vulnerable to the phenomenon, actors involved and sectoral context different forms of corruption at all stages of the value has been insufficiently addressed. Politics and Governance, 2020, Volume 8, Issue 2, Pages 167–179 167 Mapping out the corruption risks in the governance both played an important role for each country in terms of renewable natural resources, such as fisheries and of social and economic development (Ioras & Abrudan, forestry, as well as exploring the policies aimed to re- 2006; Kokorsch & Benediktsson, 2018). The de facto pri- duce them, is both relevant and important in the cur- vatization of the Icelandic fisheries and the repossession rent global sustainability context. Such work should not of forests in Romania following the collapse of the com- solely be directed towards developing countries, espe- munist regime, both occurring in the 1990s, has meant cially since according to the Group of States Against the sectors have been faced with a variety of challenges. Corruption (GRECO, 2017, p. 20), “weaker democracies Even though the sectors are different, they share com- look to Europe for guidance in their fight against corrup- monalities in that external governmental agencies are tion.” Therefore, a comparative qualitative case study de- legally responsible for enforcement of the law. The re- sign was chosen to shed light on the research question search question could, therefore, be explored by compar- of ‘What generates corruption risks in the value chain ing these two cases. of renewable resources in Europe, and how has it been An application for the research was approved in 2017 addressed?’ We aim to improve the understanding of by the Research Ethics Committee of the University of responses to potential risks and how they play out in Iceland. Following that, a stakeholder map was devel- countries with different levels of corruption. Improving oped for each case study (Reed et al., 2009; Durham, understanding of both the risks and the policies meant Baker, Smith, Moore, & Morgan, 2014), and key infor- to tackle them provide insights into the barriers to sus- mants recruited as a result. They were asked to provide a tainable resource management. The small sample that list of possible participants for the research, according to was subject to this study limits the generalization of the a snowball sampling method (Robson, 1993), to ensure findings, which could be strengthened if applied to fur- anonymity. In-depth semi-structured interviews took ther cases. place from March to October 2018. As seen in Table 1, 25 interviews were conducted; 12 in Iceland and 13 in 2. Methods and Research Material Romania. The interviews were conducted in Icelandic, English, and Romanian, with a translator present in We limit the scope of the research by opting for a case- Romania; they lasted approximately an hour, with a few oriented investigation (Ragin, 1987) and thus explore exceptions ranging from 40 minutes to 2,5 hours. To en- the phenomenon within a real-life context by employ- sure a representative sample, 12 of the interviews were ing an exploratory case study strategy (Robson, 1993; taken in the capitals, while 13 were conducted in rural Yin, 2014). Empirical analysis was undertaken as a binary areas or smaller cities. comparison between two selected cases, Iceland and As can be seen in Table 1, the number of participants Romania (Tarrow, 2010). The aim is for the understanding exceeds the number of interviews in the Romanian case. and knowledge generated from the cases to shed light on That is because a participant showed up to the interview the phenomenon in general, making this an instrumental with colleagues. When the numbers in the stakeholder inquiry (Stake, 1995). groups are added up, they are larger than the number of The rationale behind the case study selection was to participants since it was common that people had served explore the initial assumption that countries recorded multiple roles in the sector and could, therefore, be cat- as having low corruption levels were more successful in egorized in more than one group. Notice that we also addressing corruption risks in their value chains as op- refer to ‘current/former’ role in order to better ensure posed to those recorded as having high corruption levels. anonymity. In terms of the age of the participants, each According to the Corruption Perceptions Index, the lower age group is represented. There is, however, an imbal- a country is ranked on the list, the greater the percep- ance between female and male participants. We failed tion that corruption is prevalent. Romania has historically to recruit a current/former member of government as been ranked amongst the bottom of the European coun- well as high-level representative from large companies tries while Iceland has been amongst the top. In 2019, operating within the sectors. The sample is considered Romania was ranked 70th and Iceland 11th out of 180 large enough to gain a general understanding of the phe- countries on the list (Transparency International, 2019). nomenon under study, even though limitations in the The cases were considered feasible as the researchers stakeholder sample are present, especially in terms of already had background knowledge and connections in gender diversity. the countries which served to ensure both accessibility The qualitative coding procedure used to analyse the to participants as well as limiting the resources needed interviews was adapted from the work of Turner, Kim, to carry out the fieldwork. and Andersen (2013). Causal loop diagrams were gen- As the focus of the study was to explore responses to erated based on mechanisms described by the intervie- corruption risks in natural resource management in gen- wees. This method allows us to compare and contrast the eral, as well as how they played out in different sectors, dynamics that contribute
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